Chip weakness splits the indexes
U.S. stocks diverged on October 12: the S&P 500 edged lower, the Nasdaq 100 declined and the Dow advanced. Semiconductor losses confirmed by AP weighed more heavily on technology-oriented benchmarks. The split points to selective buying across industries rather than a broad withdrawal from equities.
An early slide and a fading recovery
Our chart shows the Nasdaq 100 falling sharply just after the open, recovering around midday Eastern Time, then returning toward its lows in the afternoon. Charles Schwab’s 9:16 a.m. report provides a relevant backdrop to the roughly 0.5% early slide: memory-chip shares were already under pressure following weakness in South Korea. With bank earnings and Wednesday’s CPI ahead, enthusiasm for buying back into semiconductor growth expectations did not sustain the recovery.
The S&P 500 lost much less ground, while the Dow absorbed its early swings and held above its previous close. The Nasdaq’s failure to turn its rebound into an afternoon advance illustrates the shift away from semiconductor-led leadership toward a broader set of buying opportunities.
Oil pressure and a resilient dollar
The same Schwab report described rising oil prices after weekend violence in the Middle East and attacks on Ukrainian energy infrastructure. Fuel-driven inflation pressure weighs on growth-stock valuations. The cash Treasury market was closed for the holiday, so the equity decline should not be attributed to a fresh rise in cash Treasury yields that day. USD/JPY recovered from an early dip and spent the later part of its chart above the prior reference level. Weak technology shares alongside a resilient dollar suggest inflation and earnings selection, rather than uniform risk aversion, dominated the session.
Closing data
S&P 500 and Dow: AP. Nasdaq 100: Nasdaq.
Major Index Closes
- S&P 5007,807.24 −0.06%
- NASDAQ 10030,664.70 −0.71%
- Dow Jones 3051,850.55 +0.38%
